As You Sow has released its second annual Road to Zero Emissions Report today grading the largest 100 U.S. companies on their progress toward net zero.
Compared to last year’s report, 66% of the companies improved their overall grade. However, many still lack value-chain emissions disclosure and actions demonstrating progress in achieving the emissions reductions necessary to align with global 1.5°C goals, according to As You Sow, a shareholder representative company.
The report shows that establishing a net zero by 2050 goal and disclosing full-scope emissions is becoming more common. However, only six of the 100 companies received an overall grade of “A” or “A-”: Apple, Nike, Alphabet, Oracle, Colgate-Palmolive, and Trane Technologies. These six companies demonstrated robust progress in the three “pillars” that comprise companies’ overall score: GHG emissions disclosure, GHG target setting, and GHG reductions.
Only 14 of the 100 companies received a “B-” or better overall grade. Notably, only 7% of companies received an “A” for reducing their most significant sources of emissions in line with 1.5°C.
“In a year marked by catastrophic climate impacts and related costs, where whole cities were burned to the ground or engulfed by floods, this report highlights some good news — company progress on GHG emissions reporting and adoption of net zero GHG emission reduction goals. More importantly, however, it underscores the continued lack of progress by companies in actually reducing their emissions,” says Danielle Fugere, president of As You Sow. “In fact, many companies reported emissions going in the wrong direction.”
The increase in reported emissions by companies noted in the report is due in part to the prevalence of Scope 3 value-chain emissions. While some sectors may wield more influence in reducing Scope 3 emissions than others, it remains vital for all companies to assess, disclose, and begin addressing these emissions to meet global 1.5°C-aligned goals.
“Investors are paying increased attention to climate leaders and laggards, especially those companies that fail to address their full range of product and value chain emissions,” says David Shugar, climate and energy manager at As You Sow. “Full scope emissions disclosure takes work but is possible in every industry and is a necessary first step toward actual emissions reduction. More importantly, it drives emissions reductions across the economy.”
Article provided with permission from AppleWorld.Today